Bitcoin Plummeted to Its Lowest Level on Friday
Bitcoin plummeted below $22,010 on Friday, its lowest level over three weeks, amid a dramatic crypto sell-off in early European trading.
The world’s largest digital coin reached the $25,210 mark for the first time since June, thanks to a rally in US stocks.
Bitcoin momentarily fell from $22,368 to below $21,370, recovering somewhat to just below $22,000 in 10 minutes.
At the same time, ether slid from $1,808 to $1,568 before mounting a modest return. It had fallen below $1,733, a level not seen since August 10.
It was not immediately clear what caused the decline, which also sent Binance Coin, Solana, and Cardano down.
Since the release of the July Fed meeting minutes on Wednesday, US equities markets have retreated, with the major lesson being that the Fed is unlikely to stop raising interest rates until inflation is under control across the board, with no direction on future rate hikes provided.
According to Coinglass statistics, today was the largest liquidation of long positions on futures since June 18, when bitcoin touched its lowest price of the year, around $15,610.
BTC and ETH closed in the red on Thursday, but ether has risen 100%+ since mid-June as investors brace for a big upgrade to the Ethereum network.
Several trends converged to make digital assets more widespread during the epidemic, causing the crypto market to surge. Retail traders now have additional time and money due to social alienation and stimulus checks. Fintechs like PayPal reduced friction by incorporating cryptocurrency support into widely used digital wallets. Shiba Inu (SHIB -11.16%) and Dogecoin spurred panic by achieving jaw-dropping returns in a couple of months.